1) Huge printing of money has turned our central bank into a 3rd world one
2) Asset priced induced wealth effect is an illusion if a debased currency and higher inflation is the side effect
3) Deeper the Fed gets, the more difficult it will be to reverse
4) Commodity inflation as measured by CRB index rises to 2 year high
5) Ireland, Portugal and Greece financial concerns continue to grow
6) German Sept factory orders fall sharply
7) Sept Pending Home Sales unexpectedly fall.

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

18 Responses to “Succinct Summation of Week’s Events (11/5)”

RE: “Asset priced induced wealth effect is an illusion if a debased currency and higher inflation is the side effect”

Amen to that…IMHO the U.S. Dollar is vulnerable to a substantial decline – which would be highly damaging on a net basis. This vulnerability is seen in the U.S. Dollar in weak price action, weak technicals, and a rather large “triangle” chart pattern. Of course, strong commodity price action also confirms such a vulnerability.

For those interested in seeing a few U.S. Dollar charts illustrating the trends and triangle, my recent post on the subject:

Negative #6–Germany is a huge exporter. Their factories got cranked up because of the Greek/Portugal, et al, crisis driving down the Euro, making German exports cheap. Now the situation with the Euro has more or less reversed course. So too will their economic performance.

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About Barry Ritholtz

Ritholtz has been observing capital markets with a critical eye for 20 years. With a background in math & sciences and a law school degree, he is not your typical Wall St. persona. He left Law for Finance, working as a trader, researcher and strategist before graduating to asset managementRead More...

Quote of the Day

"The largest Asian central banks have gone on record that they are curbing their purchases of US debt. And they are also diversifying their huge reserves, steadily moving away from the dollar. The risks have simply become too many and too serious." -W. Joseph StroupeEditor, Global Events

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